Ethereum USDT On-Chain Volume Breaks $100 Billion

Tether (USDT) keeps building up momentum on the Ethereum network, potentially creating new flows to and from exchanges. While the supply of USDT remains without change, the velocity of coins increases mostly based on the Ethereum network flows.

Ethereum USDT Transfers Boost Market Liquidity

The total USDT transfer volumes on the Ethereum network just surpassed $100 billion for the first time, up 6,000% since the start of 2019 according to Glass Node.

The Omni-layer USDT is slowing down and is being exchanged to the ERC-20 type once it passes through some of the leading crypto-to-crypto exchanges. At this point, USDT is much harder to track, with even more active transactions.

The USDT smart contract now spends more than 2,000 ETH per month, based on EthGasStation statistics. The highly active contract burns around 10% of all gas, with spikes to above 36% during periods of heightened activity. In the past day, as BTC was sold and volumes reached above $18 billion, the ERC-20 version doubled its volume overnight.

Additionally, there are 855 million USDT on the TRON network. The total supply of USDT has been a constant for months now, a bit above 4.108 billion coins. But the ratio of coins on different networks, and the flows between exchanges mean USDT now has a different effect on the BTC price.

USDT Flows into BTC, Leading Altcoins

More than 76% of all BTC volumes are against USDT, and during the recent sell-off, each coin flowed through the exchanges nearly six times in 24…

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